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SINGAPORE: The minimum occupation period (MOP) for executive condominiums (ECs) will be raised from five years to 10 years as part of efforts to help first-time home buyers secure a unit, the Ministry of National Development (MND) announced on Friday (May 8).<\/p>\n
Buyers of new ECs will need to fulfil the MOP before they can rent out their whole unit, purchase another residential property or sell their unit to Singaporeans and permanent residents.<\/p>\n
New ECs will also become fully privatised after 15 years, up from the current 10 years. This means that after the 15th year, EC homeowners can sell their unit to any buyer, including foreigners and corporate entities.<\/p>\n
The quota and priority period for first-time home buyers will also be increased.\u00a0<\/p>\n
Currently, developers must reserve 70 per cent of EC units for first-timer families during the first month from the project\u2019s launch date.<\/p>\n
This quota will be increased to 90 per cent, and the priority period will be extended to two years.<\/p>\n
After the two-year period, developers can sell the remaining units to all eligible buyers, including second-time buyers.<\/p>\n
\u201cThis will provide greater support for young married couples and families looking to buy their first home,\u201d said MND.<\/p>\n
The ministry also announced that developers will no longer be able to offer a Deferred Payment Scheme (DPS), which allows buyers to pay 20 per cent of the purchase price upfront and the remaining 80 per cent when the project obtains its Temporary Occupation Permit.<\/p>\n
Buyers who opt for this scheme generally incur a 2 to 3 per cent premium over the EC unit purchase price.<\/p>\n
All EC buyers will have to use the Normal Payment Scheme, where buyers make progressive payments based on construction milestones.<\/p>\n
These new measures will apply to all EC Government Land Sales (GLS) sites with tender closing dates on or after Friday.<\/p>\n
Speaking at the National University of Singapore IREUS Urban Housing Symposium, Minister for National Development Chee Hong Tat said the changes to the EC scheme will further support first-time home buyers and focus ECs on meeting occupation needs for homeowners.<\/p>\n
He noted that the proportion of first-time EC buyers has decreased, relative to second-timers who have larger housing budgets from the sale proceeds of their first home.<\/p>\n
In 2020, about half of EC buyers were first-timers. This dropped to between 30 and 40 per cent in 2024 and 2025.<\/p>\n
From 2021 to 2025, among ECs that were transacted on the open market, about 75 per cent were sold within five years after their MOP, up from 45 per cent over the preceding five-year period.<\/p>\n
Mr Chee said: “We also hope this will result in developers reducing their bids and the prices for their ECs.”\u00a0<\/p>\n<\/div>\n